The establishment of Soviet rule in the Transcaucasus
led to a new political order. After the proclamation of Soviet Azerbaijan
in 1920, an agreement between Soviet Russia and the Republic of Armenia,
allowed the Russian army to temporarily take control of Nagorno Karabakh
until a peaceful settlement to the conflict could be agreed upon.

However, immediately after the establishment of the
Soviet Rule in Armenia, the Revkom (Revolutionary Committee - the Bolsheviks'
main governing body at the time) of Azerbaijan declared the "disputed
territories", namely Nagorno Karabakh, Zangezur and Nakhichevan
as inseparable parts of Armenia.

Based on the withdrawal of Azerbaijan's claims on
the "disputed territories" and the agreement between the Governments
of Armenia and Azerbaijan, Armenia declared Nagorno Karabakh an inseparable
part of its country on June 1921. The text of the Decree of the Armenian
Government was published in the Armenian and Azerbaijani press (Bakinsky
Rabochy - organ of the Central Committee of the Communist Party of Azerbaijan
- June 22, 1921.). This act signified the last legal act in terms of
international law regarding Nagorno Karabakh during the Soviet rule
in the Transcaucasus.

The international community and Russia welcomed this
act, which was reflected in a resolution of the League of Nations Assembly,
in the March 4, 1921 Reference Note of the League of Nations Secretary
to its member-states, and in the 1920-1921 Annual Report of the People's
Commissariat (Ministry) of Soviet Russia's Foreign Affairs to its highest
governing body - the 19th Congress of Soviets.

However, the Bolshevik Leadership of Russia soon changed
its attitude on the problem of "disputed territories," including
Nagorno Karabakh. This political move was undertaken in consideration
of the policy of assisting the "world-wide communist revolution",
in which Turkey, having ethnic links with Azerbaijan, was entrusted
the role of "beacon of revolution in the East".

Following Moscow's orders, the Azerbaijani leadership
renewed its claims on Nagorno Karabakh. The Plenum of the Caucasus Bureau
of the Russian Communist Party of Bolsheviks' (Kavbureau) ignored the
decision of the League of Nations and rejected the referendum. In procedural
violation, it adopted a decision to separate Nagorno Karabakh from Armenia
and annex it to Soviet Azerbaijan, promising to establish a national
autonomy on its Armenian-populated territories. However, Azerbaijan
delayed granting autonomy to Nagorno Karabakh. After a two-year armed
struggle and at the Russian Communist Party's insistence, the Central
Committee of the Communist Party of Azerbaijan, granted a small part
of Karabakh the right to an autonomous oblast (a type of nation-state
formation in the USSR Constitution). This became known as the Nagorno
Karabakh Autonomous Oblast (NKAO). Even with this autonomous region,
Nagorno Karabakh was further divided as the other parts not included
in the oblast were incorporated into the regions of Soviet Azerbaijan,
thus enabling physical and geographical separation of the Armenian populated
areas from Armenia.

Thus, a large portion of the territory recognized
as "disputed" by the League of Nations was directly annexed
to Azerbaijan, with the bulk of Nagorno Karabakh left out of the autonomous
oblast (Gyulistan, Kelbajar, Gharakhat aka Dashkesan, Lachin, Shamkhor,
etc.).